Consumer companies have successfully launched micro products to reach out to Indian customers by having Shampoo sachets. The advantage of this that people who cannot or do not want to invest in the whole bottle , can buy a small sachet for 1% of the cost of a bottle.

The end result is more volume of Shampoo is being sold through the sachets rather than bottles and this is hugely successful in the rural India.

Items

Indian Rupees

US$

Shampoo Sachet

Rs. 2

US$ 0.02 (2 cents)

Shampoo Bottle

Rs. 200

US$ 5

Now Insurance company Allianz has taken the same route to launch Micro Insurance.

This today has 3.8 Million customers: Most sold in India and balance 600,000 sold Outside of India.

Alliance earned 30 Million Euros in Premiums. Here is the maths.

Items

Indian Rupees

US$

Weekly Insurance Premium

Rs. 35

US$ 0.75 (75 cents)

Accidental Death Insurance

Rs. 33900

US$ 725

Natural Death Insurance

Rs. 13200

US$ 280

If unclaimed, the entire deposit with interest after 5 years. Here is the full story.

Similarly Indian companies have launched $40 cellphones in India with 30 days battery life (stand by). They have taken away 14 percent market share. Nokia the incumbent player in India which had 64 percent market share has dropped to 52 percent market-share.